What is the role of a CPA in public accounting firms?

A Certified Public Accountant (CPA) is a trusted financial advisor who helps individuals, businesses and various other organizations plan and reach their financial goals successfully. CPAs are very well-respected strategic business advisors and they are important decision makers. They act as consultants on many issues which include taxes and accounting. This credential is a symbol of trust and professionalism in the world of finance and business. This is probably one of the highest challenging professional tracks, but the true reward for a CPA is that they are considered the most trusted advisors in business.

Public accounting firms such as Deloitte, Ernst, Young etc. consist of accountants that serve businesses, governments and individuals mostly by preparing their tax returns, financial statements and advising them on transactions. Although, being a CPA license holder adds a few extra elements to the table as a CPA is not the same as an accountant despite their similarities.

• Firstly, CPAs audit financial reports for compliance and also review company’s financial status to ensure there are no discrepancies. This is something that an accountant can not do since auditing is a skill which can be acquired by accountants only by obtaining a CPA license. 
• In addition to auditing, their oversight is essential for budget and financial reforms. Accounting tracks the financial details of the firm, including the funds taken in and money spent by the company and the staff. They assist business owners in the preparation of the overall plan by evaluating the cost of services and the types of company operations earning the most profits. 
• They can also read and interpret what the financial records mean correctly. Part of the accounting job description is to ensure complete compliance with all state and federal regulations.
• In many cases, CPAs may be called upon to give professional financial advice to their company heads or individual clients, even if this is not listed in the accounting job description. 
• One of the most important parts of a CPA's job is to work with tax returns and analyze financial information to ensure taxes are paid on time.
• ‘To err is human, to audit is divine’. Once again, auditing plays a crucial role in a CPA's job. They scan and audit every piece of financial record for miscalculations, frauds, overcharges etc. Since they are answerable to the executive and financial wing of their companies, they prepare and submit their various findings such as audit reports, budget reports etc.
• CPAs also act as a consultant in areas such as compensation, benefits, and asset protection. This is the biggest difference between a CPA and an accountant. A CPA can advise, an accountant can act on that advice.
• Nobody wants to pay extra tax. And hence CPA's advice management on tax ramifications of business decisions.
•  A CPA is authorized to oversee accounts payable and receivable.
• Due to the similarity of their job with an accountant, they can identify and investigate variances.

The title of a CPA is given by the American Institute of Certified Public Accountants (AICPA) to professionals who have successfully met the certification's education, experience and exam requirements. They are bound by a list of ethics listed under the AICPA Code of Professional Conduct which basically means that accountants working in public accounting firms have an ethical obligation to perform their work with due diligence, and to only document and record work that has been completed. Hope this article has helped you understand the role of a CPA in accounting firms and also the importance of CPA.